Mfundo Manci has been sentenced to 10 years for defrauding and misleading clients by promising high returns. Photo: Supplied
Image: Supplied
A 33-year-old man, Mfundo Manci has been sentenced to ten years in prison for defrauding clients by falsely promising high returns on their investments.
The sentence was handed down on Tuesday in the Durban Specialised Commercial Crimes Court, where Manci pleaded guilty to multiple charges, including fraud, violations of the Banks Act, the Financial Advisory and Intermediary Services Act, and the Prevention of Organised Crime Act.
The proceedings stem from a plea and sentence agreement involving both Manci and his business, Crypto Mzansi Group (PTY) LTD.
Natasha Ramkisson-Kara, spokesperson for the National Prosecution Authority (NPA), said the fraudulent activities occurred between June 2020 and April 2021, during which Manci capitalised on the growing popularity of cryptocurrency investment schemes.
Ramkisson-Kara revealed that Manci positioned himself as an online trader delving into cryptocurrency and then quickly began an investment scheme that featured both short-term and long-term promotions, enticing investors with promises of significant returns.
In a calculated move to expand his reach, Manci enlisted the help of two women, introducing them to what he described as his burgeoning online trading business. They were led to believe that by promoting his investment scheme, they could earn commissions for bringing in new clients. Manci even took steps to legitimise his enterprise, registering Crypto Mzansi Group (PTY) LTD and opening multiple bank accounts.
Unbeknownst to his accomplices, Manci’s operation was a sophisticated scam. While some investors reported receiving distributions from their investments, these payments were merely funded by the contributions of other investors, creating a facade of profitability.
Ramkisson-Kara said Manci had not invested the funds as promised; instead, he traded solely for his benefit.
As the scheme unravelled, Manci became untraceable. He took a business trip to Cape Town, during which he ceased communication with both his investors and family members.
His disappearance led his family to report him missing, while aggrieved investors filed criminal cases against him.
Ramkisson-Kara added that the Asset Forfeiture Unit (AFU) of the NPA obtained a preservation order to freeze all of Manci’s bank accounts. Following the depletion of his funds, Manci voluntarily surrendered to authorities in Cape Town, after which his case was transferred to Durban.
The AFU order ultimately facilitated the recovery of more than R4.5 million from Manci.
He was sentenced to 15 years in jail, with five suspended.
IOL News
Get your news on the go, click here to join the IOL News WhatsApp channel.
Related Topics:
